All Forum Posts by: Corey Owen

BRRRR is for a long term buy and hold property not a fix and flip. What you are doing is just taking the profits from the first home to purchase another property. If that is what you want to do and not hold the property as a rental I would suggest looking into a 1031 exchange.

We just sold a house to an FHA buyer and a lot of things came up in the closing process that I was unprepared for and I wanted to see if I just got hosed because of lack of knowledge on my part or if what I went through was standard.

1. We had to have 2 appraisals done on because we had owned the property less than 6 months. Also we were told that we had to pay for the second one as FHA does not allow the buyer to pay for both.

2.  We had to bring the porch and deck up to code as far as the spacing on the posts is concerned even though the house was 23 years old. I would have thought this was grandfathered in, along with some siding and other exterior painting we had to do.

3.  If the original closing date passes due to the buyer's lender not completing paperwork on time, could we technically cancel the contract and keep the earnest money because they didn't close one time.

Thanks in advance for the info!

I am by no means a buy and hold expert, but what you said about holding a property that is currently losing money every month in hope that it appreciates and that rents rise is a huge red flag for buy and hold properties.  No one can predict the future, but it seems very likely that we are either at the top or very near the top of the market in terms of appreciations for awhile.  It is very likely that what your house is worth now is the same or even greater than what it will be worth in 2-3 years.  Buy and hold for the sole purpose of appreciation is a very dangerous game.  Just ask yourself if you would be happy with the investment if you held for 2-3 years losing $200 a month and then went to sell and your property was worth 5-15% less than it is today.

Hello Bigger Pockets Community!  I am in need of your expertise and advise. I am a relatively new investor,  but have just completed my second flip.  I am looking to get into rental property investing as well, but am having an extremely difficult time with the financing aspect.  I have used hard money and owner financing on my fix and flips, but they were both short term loans (<12 months).  I quit my job to pursue investing full time (long story), so I have no W2 income, only my profits from the flips.  No one wants to give me a loan until I have 2 years of tax returns for my business which is going to put me about 2.5 years from now before I can get my first loan.  I have been in contact with some people about private money loans and they are interested, but nothing long term.  I have also seen some portfolio lenders that will lend based on appraised value of the home, but the minimum amount they will finance is 300k with most wanting 500k.  We have a great wholesaler that finds us good deals and we do all the work ourselves, so we have the contracting side down.  My wife is also a NCIDQ certified interior designer, so our homes look amazing and the opportunity to snag some depressed properties and convert them to rentals is huge, but no one will give us the length of terms we need.  What do you suggest?

Hi @Jered Sturm,

I am in the Kennesaw area as well and definitely interested in joining your meet up.  I may have a space as well at my church.  I am checking right now on availability.  There is currently a Bible study meeting at the space on Tuesdays, but they may be using one of the smaller rooms.  Is Tuesday the only night you would be available?

Thanks for the referral Jason, I'll definitely check her out.

Hello bigger pockets community!  I am a new investor from the Cobb County area in Georgia just outside of Atlanta.  I have my first house under contract and will hopefully be closing next week.  If there are any investors from the are that can recommend a great CPA  that is familiar with real estate investing and an attorney for creating the proper business entities I would be very appreciative.